Bundesbank sees risks to financial system from low interest rates

adminonApril 24, 2023May 3, 2023Leave a Comment

Bundesbank sees risks to financial system from low interest rates

This was said by andreas dombret, chairman of the bundesbank, at the presentation of the financial stability report on thursday. However, the longer it lasted, the greater the side effects and risks to financial stability: "the low interest rate environment is becoming more and more of a burden on the german financial system."

Low interest rates continue to deplete insurers’ buffers. "It is becoming increasingly difficult for life insurers to earn the guaranteed interest rate in view of the low interest rates," said dombret. In addition, the valuation reserves on insurers’ balance sheets became a problem when they had to be distributed to policyholders.

German banks, which traditionally rely heavily on interest surpluses, are also affected, according to the bundesbank. The tough competition has already taken its toll on the institutions over the past 15 years, said bundesbank vice president sabine lautenschlager. Low interest rates now put additional pressure on business models. The geldhausers therefore had to cut their costs.

The bundesbank also sees dangers for the real estate market. After prices, especially in large cities, had already risen by almost a quarter between 2009 and 2012, the bundesbank expects prices to rise by a further 9 percent in 2013. However, it does not yet recognize an acute danger. Thus the credit had increased only moderately. In addition, the debt sustainability of private households is solid.

"It cannot be ruled out, however, that property owners will suffer losses in assets due to possible price corrections," dombret said. He referred to the experiences of other countries, where price bubbles had formed during periods of long low interest rates. The bundesbank will therefore continue to monitor the situation closely.

Gremsdorf fishermen clean the banks of the river aisch

Seven young fishermen and ten adult anglers from the gremsdorf fishing club met last saturday for a rough "zam rama dama", to clean the club water and the surrounding corridor once again from the mull.

At the geratehaus, gauze bags were handed out to the individual groups, and the teams set off to their sections and searched the banks of the aisch and the neighboring areas, according to a press report from the association. Fast-food packaging, cans, bottles and all kinds of other waste were picked up by the helpers.

Four coarse bags full

A total of four coarse bags of mull, old buckets and cardboard were collected and the banks of the river aisch with its adjoining meadows and paths were cleaned. The collectors noticed that mull is probably often simply thrown out of cars into nature. But also directly on the banks of the river aisch, gauze can be found that may have been left behind by walkers. The volunteers of the gremsdorf fishing club clean up the area twice a year, with the youth getting heavily involved. A small group of eager helpers also tidied up the club’s equipment hall and ensured that it was tidy and clean.

functional oocytes grown from stem cells

The japanese scientists present their results in the journal "science". The researchers had already succeeded in similar experiments with sperm before.

Katsuhiko hayashi of kyoto university and his team used two types of stem cells for their experiments: firstly, embryonic stem cells, which are derived from embryos and can be differentiated into any cell of the body. On the other hand, so-called induced pluripotent stem cells (ips cells), which – ethically more harmless – are obtained from already matured body cells and can still differentiate into numerous different types of cells. These two types of stem cells were first transformed by the researchers through genetic manipulation into cells that closely resemble germ cells. From the primordial germ cells egg and sperm cells emerge.

The researchers then cultured these cells together with cells from the ovaries of mice to create a kind of artificial ovary. They showed that their germ cells developed in a similar way to those in a natural embryonic ovary. Finally, they transplanted the complex into the ovaries of mice. There, the cells developed into eggs, which the researchers then removed, allowed to mature in the laboratory and finally fertilized artificially. The resulting embryos were transplanted back into female mice.

In both cases they received mouse offspring, which continued to multiply. The success rate is not yet very high, but in principle the work provides a solid basis for further developing the development of oocytes in humans in the laboratory, the researchers say. This is a central prerequisite for being able to treat certain forms of infertility in humans.

Last year, another team of japanese researchers also presented a method for growing functional sperm cells in the laboratory. The scientists had taken testicular tissue from mice and stimulated the early developmental stages of sperm contained therein to mature. They then used the sperm to fertilize oocytes, which eventually gave rise to several mouse babies.

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